The link between the stock market and bitcoin’s returns in India increased

Despite the lack of clarity on the regulatory situation regarding cryptocurrencies in the country, the number of people associated with the crypto industry has increased. The International Monetary Fund (IMF) says that the correlation between the returns of the Indian stock market and Bitcoin has increased manifold after the pandemic. This is a big sign that cryptocurrencies have a low risk appetite.

Retail and institutional investors have increased their share in the crypto market in Asia, and many of these investors are also involved in the equity market. This is a major reason for the growing engagement between the equity market and crypto. “We have found that engagement in the crypto and equity markets has increased in India, Vietnam and Thailand,” the IMF said in a blog post. This is not the first report that has reported an increase in the number of people investing in cryptocurrencies in Asia. Recently, Accenture said in a report that holdings in crypto and other digital assets in Asian countries such as India, Vietnam, China, Indonesia, Malaysia, Japan, Singapore and Thailand have increased manifold over the years. It was reported in the report that people holding up to $1 million are investing in crypto to diversify their portfolio.

For the last few months, the crypto market has been selling due to slowdown and some other reasons. Due to this the prices of cryptocurrencies have come down and investors have suffered huge losses. Due to the slowdown in the crypto market, many firms in this segment are cutting their workforce to reduce costs. Coinbase, one of the major crypto exchanges, has decided to reduce its workforce by 18 percent. Headquartered in the US, the firm says that it has taken this step to cut costs in this difficult period of the industry. The decision is expected to result in layoffs of over 1,000 employees of the exchange.

Earlier crypto trading and lending platform BlockFi announced the removal of around 200 employees and crypto exchange Crypto.com about 260 employees. Both these firms have given similar reasons for reducing the workforce. Bitcoin, the largest cryptocurrency by market capitalization, touched a high of $69,000 in November last year. Since then it has declined significantly.

Cryptocurrency prices in Indian exchanges

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